North Carolina Pension Fund Faces Significant Cryptocurrency Losses

The North Carolina Retirement Systems began investing in cryptocurrency in late 2025, following legislative approval despite opposition from state employees. As of early 2026, the pension fund has experienced substantial losses, with its cryptocurrency investments down approximately $33 million since September 30, 2025. This decline represents a small fraction of the fund's total value, which exceeds $140 billion.

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The state’s investment in a cryptocurrency fund known as Strategy has seen its valuation plummet from $51 million to $18 million, a decrease of about 65%. Additionally, the pension fund holds shares in Coinbase, which have dropped from $32 million to an estimated $15 million, and Robinhood Markets, down 41% to around $38 million. Despite these losses, State Treasurer Brad Briner maintains that the pension fund's overall performance remains above the 6.5% annual growth target.

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The push to include cryptocurrency in the pension fund was led by North Carolina House Speaker Destin Hall, who initially sought to allocate up to 10% of the fund to crypto investments. After facing significant pushback from various stakeholders, including the State Employees Association of North Carolina (SEANC), the proposal was revised to a 5% cap. Briner has not yet reached this limit, opting for a cautious approach to cryptocurrency investments.

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Supporters of the investment, including State Rep. Mike Schietzelt, argue that the volatility of cryptocurrency is part of its nature, with potential for significant gains following downturns. Schietzelt expressed confidence in Briner's investment strategies, stating, “Treasurer Briner has diamond hands.” Conversely, critics like Ardis Watkins from SEANC argue that the inherent risks of cryptocurrency make it unsuitable for retirement funds, emphasizing the need for stability in pension planning.

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Briner has acknowledged the fluctuations in investment values, noting that every asset class experiences ups and downs. He pointed out that the pension fund's exposure to the stock market is significantly greater than its cryptocurrency investments. “The first priority of our investment team is to keep our employee and retiree money secure and growing,” Briner stated, reinforcing his commitment to prudent investment practices.

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While the reported losses in cryptocurrency investments are substantial, the overall impact on the pension fund remains minimal, constituting less than 1% of its total value. There is a divergence of opinion regarding the appropriateness of cryptocurrency in retirement planning, with some advocating for its potential while others caution against its volatility.

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The North Carolina Retirement Systems' foray into cryptocurrency has sparked a debate about the suitability of such investments for pension funds. As the state navigates these challenges, the focus remains on balancing risk and ensuring the long-term security of employee and retiree funds.

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